NZD/USD in ranges, around 3-week lows

NZD/USD managed to find support above the 0.7000 handle. The pair had been moving sideways since yesterday in a range between 0.7010 and 0.7065. The kiwi is consolidating after falling on Tuesday to 0.7009, the lowest level since June 28.

Greenback remains strong in the market and particularly against commodity currencies, despite the risk-on environment in equity markets. NZD receive some respite yesterday after a rise in dairy prices following the latest GDT auction, that showed a 1.9% rise in the price index.

No relevant economic data is set to be released today in the US and on Thursday it would be the turn of the Philly Fed and the Existing Home sales report. But before the US data, the Reserve Bank of New Zealand (RBNZ) will release an update on “economic assessment” and the kiwi is likely to be influenced. A pessimist report would increase speculations about a rate cut while an optimist report could pushed the NZD sharply to the upside.

NZD/USD technical levels

To the downside, support levels might be located at 0.7000/10 (psychological / July 19 low), 0.6970 (June 16 & 24 low) and 0.6950 (June 6 high). On the flip side, resistance could be seen at 0.7045 (20-hour moving average), 0.7065/70 (July 18 low / daily high) and 0.7095.